10 Jun 2013
AUD/USD break of 0.9430 reveals further downside pressure
FXstreet.com (Barcelona) - The Aussie is trading sharply lower to start the week, breaking last weeks low of 0.9427 and trading down 107 pips at 0.9408.
Analysts are point towards the economic data from China which was released over the weekend as a main catalyst for the early weakness. The main reports out of China consisted of CPI (-0.6% vs. -0.2% forecast), Retail Sales (12.9% vs. 12.9% forecast) and Industrial Production (9.2% vs 9.3% forecast) “Chinese trade data showed a marked reduction in activity and this could give the bears another reason to sell AUD on Monday morning (as if they need another one!). AUD/USD has stalled at .9430 on two occasions and there were reports that a particularly powerful Asian central bank was buying there,” noted Sean Lee of FXWW. Economic data out of Australia will be light in the coming session with markets closed for holiday.
The FXStreet.com Trend Index remains in slightly bearish set up on the daily chart, while the OB/OS index reads neutral. Short term moving averages are also in bearish set up, with price remaining below both the downward sloping 9 and 20 dma’s. Initial support sits at 0.9390 (weekly chart support), while first resistance remains at 0.9427 (previous support, now resistance on daily chart)
Analysts are point towards the economic data from China which was released over the weekend as a main catalyst for the early weakness. The main reports out of China consisted of CPI (-0.6% vs. -0.2% forecast), Retail Sales (12.9% vs. 12.9% forecast) and Industrial Production (9.2% vs 9.3% forecast) “Chinese trade data showed a marked reduction in activity and this could give the bears another reason to sell AUD on Monday morning (as if they need another one!). AUD/USD has stalled at .9430 on two occasions and there were reports that a particularly powerful Asian central bank was buying there,” noted Sean Lee of FXWW. Economic data out of Australia will be light in the coming session with markets closed for holiday.
The FXStreet.com Trend Index remains in slightly bearish set up on the daily chart, while the OB/OS index reads neutral. Short term moving averages are also in bearish set up, with price remaining below both the downward sloping 9 and 20 dma’s. Initial support sits at 0.9390 (weekly chart support), while first resistance remains at 0.9427 (previous support, now resistance on daily chart)